In terms of prestige, there are many fantastic universities in Europe to study English/Literature. Top schools like Oxford, University of Cambridge, University College London are well known and prestigious. Funding is tricky. Usually, if you are a UK/EU resident, the tuition is often cheaper and even government subsidized. As an international student, you are on the hook for full tuition at international rates, which can be quite expensive. For graduate programs, the onus in on the student to find funding. So you have to apply for fellowships, scholarships, and funding in conjunction with your graduate application. Some schools will have internal merit based scholarships, but those usually are small amounts and quite competitive.
Check with your program before applying. The program director will have more information about funding sources.